Bitcoin Can Protect Your Savings From Currency Devaluations

Chris’ note: Last week, hundreds of people in Argentina lined up to get their savings out of the bank. If you don’t live there, you may think this doesn’t impact you. But my colleague Teeka Tiwari has a different take…

It has to do with something he calls the “Great Unwinding.” Below, Teeka shows you what that is… and how it could impact you as an investor no matter where you live.

Even though we’ve never had a situation where all global currencies got crushed at once… I believe a broad-based currency meltdown is in the offing.

And today, I’ll share why savers need to adopt a new paradigm to survive the implosion of fiat currencies…

A $69 Trillion Debt Bomb

The current economic crisis in Argentina was triggered last month when the opposition candidate defeated President Mauricio Macri in a primary election.

That result spooked investors, who feared a return of interventionist policies. The main Argentine stock market crashed more than 30% – in one day.

The Argentine peso collapsed over 25% (and continues to fall).

To keep it afloat, the government announced the new capital controls. And that’s why my colleague’s grandmother is considering withdrawing her savings.

But emerging-market currencies aren’t facing just political uncertainty. The main problem is debt…

Total emerging-market debt has tripled since 2007 – and now stands at $69 trillion. (Just last year, Argentina took out an emergency $56 billion loan from the International Monetary Fund to cover its short-term debt.)

To make matters worse, many of these loans must be paid back in U.S. dollars. And as the dollar rises, their currencies get weaker. So the loans are more expensive to service.

Now, emerging markets need to pay back (or refinance) $1.5 trillion in debt over the next 18 months.

But guess what? They don’t have the money.

Countries are issuing debt they can’t service – and printing too much money to try to cover it. Nothing kills a currency faster than that.

The New Paradigm

I’ve said it before, and I’ll say it again: A new narrative is emerging. And it’s, “Oh my goodness, the spaghetti just hit the fan all over the world.”

And when it does, investors will look elsewhere for alternatives – like bitcoin.

Without getting into the weeds, bitcoin runs on something called a blockchain. No individual person runs the bitcoin blockchain. It’s peer-to-peer, with no intermediary. So governments can’t shut it down. They can’t confiscate or put controls on it.

Even China – with one of the more repressive governments in the world – has tried to ban bitcoin. Yet trading still flourishes there. Russia, Vietnam, and Colombia have all tried and failed, too.

For those who have lived through several currency devaluations (like Argentines), bitcoin is a substitute for putting their money in banks. In fact, they’re willing to pay a $1,000 premium or more for bitcoin.

The government can stop them from buying U.S. dollars… But it can’t stop them from buying bitcoin.

Even with bitcoin’s wild volatility, they’d rather have 20% of something than 100% of nothing.

Now, if you’re from a country with an established fiat currency, you probably won’t place your savings into a volatile asset like bitcoin.

But consider a small stake; it could turn into life-changing gains as the Great Unwinding unfolds.

Central banks can paper over problems for a very long time – but not forever. At some point, the fiat currency bubbles around the world will burst.

And when they do, more people will rush into bitcoin and altcoins. And that will send prices soaring.

Let the Game Come to You!

Teeka TiwariEditor, Palm Beach Confidential

P.S. As I mentioned above, all you need is a small stake in crypto to make life-changing gains. In fact, for the past year, I’ve been researching a number of tiny crypto projects. And now that Crypto Winter is over, I’m ready to reveal them to the world.

That’s why on Wednesday, September 18 at 8 p.m. ET, I’m holding my first live crypto webinar of 2019. It’s called 5 Coins to $5 Million. I’ll tell you about a market phenomenon we won’t see again until 2024 that’ll push these coins to new highs.

And if you register now, you’ll also get my new No. 1 crypto pick during this event. Plus, you’ll have instant access to free training videos available only to members of my elite crypto trading service, Palm Beach Confidential.